+91-9696969696
The cement industry in India is a cornerstone of the country’s infrastructure and development. As the nation gears up to celebrate National Concrete Day on September 7, IndiaMART, India’s largest B2B online marketplace, has released its industry report on the cement sector titled “Cementing Growth: An Indian Perspective on the Cement Industry.” The report provides a deep dive into the key trends, government initiatives, and the growth trajectory of the sector, making it an essential read for stakeholders in the cement and construction industry. Click here to download full report
Cement Industry: A Vital Pillar in India’s Economy
“What Water is for Life, Cement is for Modern India”
Cement is one of the eight core industries in India, and its significance in driving economic growth cannot be overstated. With an impressive 583 million tonnes of installed manufacturing capacity and an annual production output of 391 million tonnes, the industry has been growing steadily. In FY23 alone, it achieved a year-on-year growth rate of 6.8%, with expectations of an 8% growth by FY25. This growth is projected to increase output by 150-160 million tonnes between FY25-28.
What sets the cement industry apart is its far-reaching impact on the economy. For every million tonnes of cement production capacity, an estimated 20,000 downstream jobs are created. Moreover, the industry has a multiplier effect of 4.16x on the country’s economic output and contributes 1.53x to GDP growth, underlining its pivotal role in India’s development story.
Key Insights from the IndiaMART’s Cement Report
Over the last five years (2019-2023), IndiaMART registered an impressive 15.5 million enquiries related to cement. The report highlights the increasing interest in cement, with 60% of buyers showing intent for recurring purchases. The top states driving demand include Uttar Pradesh (16%), Maharashtra (9%), Bihar (8%), Tamil Nadu (7%) and Rajasthan (7%).
Here’s a breakdown of the purchase intent:
- 42% of enquiries were for personal use,
- 38% for business use,
- 20% for reselling purposes.
These figures indicate a growing reliance on digital platforms like IndiaMART for fulfilling both individual and business-level cement needs.
Driving Digital Connections: IndiaMART’s Role in Cement Trade
IndiaMART has emerged as a crucial platform for the cement industry, connecting buyers and sellers seamlessly. According to Dinesh Gulati, COO of IndiaMART InterMESH Limited, the platform facilitated more than 15 million enquiries of cement over the past five years. Cement remains one of the top categories on IndiaMART, with 8% of total paid sellers dealing in construction and building raw materials.
“Our report comes with invaluable insights into the cement industry – all captured at one place, with a glimpse on how IndiaMART continues to be a favorable destination for cement suppliers and buyers to engage online. We are hopeful that this report will help improve the shopping experience for buyers and add value to the operational decisions of cement suppliers on our platform and beyond.,” said Mr. Gulati.
The Road Ahead: Government Initiatives and Future Growth
The cement industry is poised for further growth, supported by robust government initiatives aimed at infrastructure development, affordable housing, and transportation. The increased demand from both urban and rural housing projects, coupled with government-backed investments in infrastructure, signals a bright future for the sector.
IndiaMART’s report is a valuable resource for both buyers and suppliers, offering insights that can help them capitalize on emerging trends and plan their growth journey. As the cement industry continues to expand, stakeholders can look forward to leveraging the platform’s digital tools to boost their business.